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Dollar Bears Poised To Pounce In December?

Dollar Bears Poised To Pounce In December?

Markets have been happy to sell the dollar recently on the narrative that the US is seeing slowing economic data, inflation is falling,  and the prospect of  federal reserve interest rate cuts are growing ever closer. This dollar weakness is expected to continue as long as the Federal reserve doesn’t signal any more rate hikes.

Expect EURUSD volatility over US CPI print

On Wednesday at 13:30 UK time the US CPI print will be released. The headline is expected to fall to 3.1% from 4% prior & a reading below 2.9% would likely weaken the USD. The core reading is also expected to fall to 5% from 5.3% prior, & a reading below 4.9% should also weaken the USD. The print that should boost the USD would be if both headline and the core come in above market’s maximum expectations.

USD softness into year end!

Another really notable trend around this time of the year is USD weakness. This is due to some taxation reasons that regularly sees USD flows out of parent US companies into daughter companies around year end. So, the USD does…